AYLMER, Ont. – The Amtelecom Income Fund Board of Trustees has unanimously recommended to unitholders that they approve an all-cash takeover offer from EastLink owner Bragg Communications.
In a joint statement Tuesday, Amtelecom and Bragg announced that the takeover bid and circular relating to Bragg’s offer to acquire all of the outstanding units of Amtelecom, and the trustees’ circular reflecting Amtelecom’s Board recommendation, have been mailed to Amtelecom unitholders.
The offer was made in accordance with the parties’ previously announced support agreement at an offer price of $14.25 per unit.
The all-cash consideration under the Bragg offer represents a 26.7% premium over the closing price of the units on Feb. 15, 2007, the day prior to the announcement by Bell Aliant Regional Communications Income Fund that it intended to make an offer for Amtelecom. The offer price is 9.6% above the Bell Aliant offer price of $13.00 per unit.
The offer will expire at 8:00 p.m. EDT on May 23, 2007, and is conditional upon a minimum of 66 2/3% of the outstanding units being deposited, regulatory approvals and other customary conditions.
Amtelecom’s financial advisor, CIBC World Markets Inc., has provided an opinion stating that the consideration offered to unitholders pursuant to Bragg’s offer is fair, from a financial point of view, to unitholders, the statement said.
Documents relating to the offer are available free of charge on SEDAR at www.sedar.com and on the Fund’s website at www.amtelecomincomefund.ca. Inquiries concerning the information in the trustees’ circular should be directed to Kingsdale Shareholder Services Inc., toll free at 1-866-833-6977.
